India Inc on a dream run

India Inc on a dream run
28.4% growth in Top Line in 2006-07: D&B’s “India’s Top 500 Companies 2007”

Dun & Bradstreet, the world’s leading provider of global business information, knowledge and insight released the 8th edition of its annual publication “India’s Top 500 Companies 2007” which covers 53 diverse sectors and captures the underlying transformation witnessed in the Indian corporate segment during the past year.

Speaking at the media launch of the publication, Mr. Kaushal Sampat, Chief Operating Officer – Dun & Bradstreet India said, “Reflecting the growth opportunity inherent in the Indian economy and the ability of India Inc to capitalise on that, we saw over 20% new companies make it to the Top 500 list this year. These 103 new companies that debuted on the list witnessed a 58% increase in their cumulative Total Income, which has therefore propelled them into this august list.”

A study of the Capital Work-in-Progress across 431 companies predominantly in the manufacturing sector, revealed that the aggregate CWIP grew by as much as 34% as compared to the previous year. This is indicative of the strong business sentiment and confidence of the Indian business community, which bodes well for future growth,” he added.

The criteria for ranking include total income, net profit and net worth. The list includes both listed private sector companies as well as public sector enterprises (PSEs). The companies were short listed on the basis of their market capitalisation on the Bombay Stock Exchange and the National Stock Exchange.

Winners of the D&B – Amex Corporate Awards 2007

Major findings of the study:

Aggregate Total Income of all Top 500 companies stood at Rs 19,335 bn, having grown by 28.4% y-o-y Non-Ferrous Metal, Construction and Retail sectors outperform in terms of growth Almost 51% of the cumulative total income came from four sectors, namely Oil- refining & marketing, Banks, Software & ITeS and Automobiles

Total Income of all PSU companies in the Top 500 list stood at Rs 8,868 bn, 45.9% of the aggregate Total Income

It is the PSU companies that rule the roost in terms of market capitalization. The 54 PSU companies featured in the Top 500 list command a high share of 25.2% in the total market capitalization of the Top 500 Companies

Software & ITeS, Banking, Oil - Refining and Marketing, Pharmaceutical, Textile and Construction emerged as the most valuable sectors

Mid cap companies dominate the list with a share of 46.8% or 234 companies

However, large cap companies account for 87% of the aggregate market cap